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transportation costs for railcars in Ukraine's territory. In particular, the company will switch to calculating the railcar cost component considering the actual, rather than the normative, movement speed, announced by UZ. As a result, when calculating the number of railcar-use days will increase sharply, and toll rates will remain at the current level. However, in the future, with the increase in the railcar rental cost, Ukrainian Railways expects a decrease in monthly railcar demand. As a result of the railcar utilisation ratio reduction, the toll rates will likely decrease to the market level.
UZ increased the volume of freight transportation by 9% in July. Ukrainian Railways (UZ) transported more than 10.3 million tons of cargo in July, which is 9% more than a month earlier, the press service of UZ reported. In July, the volume of domestic cargo transportation, export, and import increased; however, transit was totally absent. In July, UZ transported 6.2 million tons of cargo (+10.5%) domestically, more than 3.4 million tons of cargo (+8.7%) for export, and 598,800 tons for import (+4.5%). Transportation of most key cargoes increased: grain, ore, coal, ferrous metals, diesel, building materials, etc. In addition, there was a 12.4% (542 thousand tons) increase in the volume of petroleum product transportation, iron and manganese ore rose by 3.2% (2 million tons), and grain cargo increased by 7.2% (1.46 million tons).
● Ships
The Danube’s shallow water will affect cargo flow. The water level on the Danube continues to fall, and the shallow water situation remains critical, affecting the supply of Ukrainian grain via the river. "The prolonged heat and lack of precipitation, as well as the spring flood, which was below the average level, create an anomalous situation that has not been observed in previous shallow water periods," said Dmytro Moskalenko from the Ukrainian Danube Shipping Company. According to the Danube Hydrometeorological Observatory, the average water level on the Danube in August is expected to be 10-250 cm below average, and in the Ukrainian territory - 15-145 cm below normal. The water level of the Danube is expected to rise by 10-15 cm, but this will be short-lived. The prospect of continued low rainfall is worrying.
The shipping capacity of the Danube Shipping Company has tripled.
During the last three months, the company has repaired 150 vessels and returned another 35 from a long layoff. As a result, it is now possible to mobilise 90% of its fleet on the Lower Danube, which is necessary for exporting Ukrainian agricultural products to the seaports of Romania and Bulgaria during the blockade of Ukraine’s Black Sea ports. The shipping company announced plans to increase the number of barges to 220-225 by purchasing barges from the Mississippi basin. In addition, the company plans to reformat the operation of its passenger fleet and launch a stevedoring line. Along with the increase in the charter rate, the company reduced the duration of the voyages, which increased the revenue of the shipping industry by 700%.
The Yuzhny Ukrainian port has resumed operation. On the morning of August 8, the bulk carrier SACURA, loaded with Ukrainian products, was the first ship to leave the Yuznhy port and then headed on its way to Italy. The vessel joined a caravan with the bulk carrier ARIZONA, which left the port of Chornomorsk for the Netherlands, also on August 8. Both ships carry about 60,000 tons of agricultural products. According to the Turkish Ministry of Defence, the SACURA carries 11,000 tons of soybeans, and the ARIZONA carries 48,000 tons and will initially travel to Iskenderun, Turkey in compliance
71 UKRAINE Country Report September 2022 www.intellinews.com